Gabon Secures CFA120 Billion in Oversubscribed Bond Issue at 141% Subscription Rate

Gabon raises CFA119.91 billion via a multi-tranche bond issued on the Bvmac.
• Investors now show renewed confidence amid post-election stability.
• Funds to finance major state infrastructure, including a new Administrative City.

Gabon successfully raised CFA119.91 billion ($214 million) through its latest bond issuance, surpassing the initial target of CFA85 billion. The operation, launched in March 2025 on the Central African Stock Exchange (Bvmac) under the name EOG 2025 Multi-Tranche, recorded a subscription rate of 141.07%, according to Emrald Securities Services Bourse (ESS Bourse), the arranger and lead manager.

The strong investor interest is largely due to favorable terms. The bond offered two tranches with attractive interest rates: 5.6% for a two-year maturity and 6.0% for a three-year maturity. This structure appealed to a broad investor base by offering both flexibility and competitive returns.

This performance marks a return of investor confidence in Gabon’s credit profile within the CEMAC region. The timing follows the country's post-election stabilization, contrasting sharply with the underwhelming EOG 2024 Multi-Tranche issuance, which suffered multiple delays and low interest.

Gabon’s ability to close this operation successfully reinforces its financial credibility and signals improved perception among regional investors.

Proceeds from the bond will finance large-scale infrastructure, especially the future Administrative City of the Gabonese State. The complex aims to consolidate public administration services into a single, modern facility. The objective is to streamline operations and reduce the government’s annual rental expenses, which currently exceed CFA20 billion.

The project also includes the creation of a nearby business center designed to boost local economic activity. Authorities expect it to attract investment, create jobs, and modernize public service delivery by improving working environments and reception conditions for citizens.

Source: Ecofin Agency